In a report published Wednesday, Wedbush analyst Steve Koenig initiated coverage on Workday (NYSE: WDAY) with an Outperform rating and $76.00 price target.

In the report, Koenig noted, “WDAY is a play on the potential for cloud computing to fundamentally remake the $25B enterprise resource planning (ERP) market, just as it has disrupted the $13B customer relationship management (CRM) market. Our checks indicate significant interest in SaaS ERP from enterprises saddled with expensive on-premise systems that are costly to maintain and update, and which are based on products that are no longer considered strategic, go-to-market offerings by their vendors.”